A pair of banking companies owned by Capital Bank Financial reported stronger second-quarter earnings.
Capital Bank (CBKN) in Raleigh, N.C., reported that its earnings rose roughly 14% from a year earlier, to $2.6 million. TIB Financial (TIBB) in Naples, Fla., reported that its second-quarter profit nearly doubled from a year earlier, to $1.9 million. Capital Bank Financial, formerly known as North American Financial Holdings, owns majority stakes in Capital and TIB.
The second quarter was the "strongest quarter to date for organic loan production, successes in resolution of problem assets and continued aggressive deposit repricing," Chris Marshall, the chief financial officer at Capital Bank Financial, said in press release late Wednesday. Marshall said that those factors contributed to improvements in loan mix, the net interest margin and profitability, and efforts to consolidate various functions should improve efficiency.
The banking companies also continued to report negative net interest income due to the complicated structure of their roll-up by Capital Bank Financial. Capital Bank reported a net-interest loss of $284,000 in the second quarter; TIB posted a net-interest loss of $439,000.